Dithered rendering

Today I continued venture in high resolution bitmap mode of C64's VIC-II. As I mentioned yesterday, I started adding colors. First attempt looked butchered, but that was obvious for me when I started working on it. I used iteration depth as color for pixels in the 8x8 char area, and it gave me these blocky results:

I decided to use dithering. Since I have 16 levels of depth ( not counting the escaping shape ), each 4 levels would have their own dither level. It was a matter of finding some free memory, and poking it with tons of chars that would represent the dithering mask. My goal was to create something like